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Who did they buy those assets from, and where did they get the money to buy them in the first place?
by CompactNotice 4y ago
Who did they buy those assets from, and where did they get the money to buy them in the first place?
- simonh 4y agoThe government bought them from the banks, using money the Treasury created. When the assets are sold the created money is 'retired' and any profit returned to the Treasury. IMHO QE in the US went too far, but it was absolutely a necessary programme that stabilised the US economy at critical moments. The increased reserve requirements on banks, while dragging on bank profits since, were prudent and seem to be working well, especially compared to Europe.